Abbott v. Lockheed Martin Corp.

Dist. Ct. erred in denying plaintiffs’ request for class action treatment in action under sections 409 and 502 of ERISA alleging that defendant-employer breached its duty to plaintiffs by offering only short-term, underperforming money market investments in one of its investment plans, where defendant described plan as more profitable mix of short and intermediate term investments. While Dist Ct. based denial on its finding that reference in class definition to Hueler Index for purposes of determining whether class members experienced actual damages was improper because use of said Index was disputed by parties as valid measure of damages, use of Hueler Index was not improper since use of Index in class definition did not bind Dist. Ct. to use of said Index when determining damages: and (2) use of Index was valid means to ensure that all class members suffered damages as result of defendant’s conduct. Ct. further rejected defendant’s claim that class action treatment was inappropriate where thrust of plaintiffs’ claim was that defendant made certain misrepresentations about investment plan.